Common shareholders are individuals or entities that own common shares in a company. These shares represent ownership in the company and typically come with voting rights, allowing shareholders to participate in important decisions, such as electing the board of directors. Common shareholders may also receive dividends, which are payments made from the company's profits, although these are not guaranteed. In the event of a company's liquidation, common shareholders are last in line to receive any remaining assets after debts and obligations are settled. This means they carry a higher risk compared to preferred shareholders, who have a higher claim on assets and dividends.